Standard Chartered settlement

British bank Standard Chartered has reached a $340m settlement with the New York bank regulator. The settlement follow allegations the bank hid $250bn of transactions with the Iranian government, breaking US sanctions. The bank rejects the claims.

New York Financial Services Superintendent Benjamin Lawsky made the allegations against Standard Chartered on August 6, saying it was a "rogue institution" for breaking US sanctions for hiding transactions with Iran.

Today's announcement comes after Standard Chartered's Chief Executive Peter Sands, who strongly denied the allegations last week, flew to New York to take personal control of the bank's attempts to reach a settlement.

In a statement released last night, Standard Chartered Bank said it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks.

Standard Chartered Plc has agreed to pay $340 million to settle allegations that it hid transactions with Iran from regulators, the New York Department of Financial Services has announced.

Standard Chartered's offices in the City of London. Credit: Press Association

In addition to the civil penalty, the bank agreed to install a monitor for at least two years to evaluate the bank's money-laundering risk controls in its New York branch, the department said in a statement.

The department also said it had adjourned a hearing set for Wednesday at which it had called on Standard Chartered to demonstrate why its New York state banking license should not be revoked.

"The parties have agreed that the conduct at issue involved transactions of at least $250 billion," the department said in a statement.